The city of Peoria has taken a step toward becoming an important stop on the Taiwan Semiconductor microchip supply chain in the northwest Valley.
Peoria City Council unanimously approved a development agreement with Tempe-based Amkor Technology Arizona Inc. Feb. 20 that outlines specific guidelines and timelines for completing the project.
Among other services, Amkor will package and test chips for Cuppertino, California-based Apple Inc. that nearby TSMC will manufacture at its north Phoenix fab, assuring a bulk of the process will happen close to the manufacturing point.
Officials say it will eventually be the city’s largest private employer, and the 500,000-square-foot facility will be the country’s largest outsourced advanced microchip packaging facility.
Mayor Jason Beck said the approval is just the beginning, and a first step for not only Peoria but Arizona.
“The quickest way to stop a war in this nation is not to send more troops. It’s not to put more soldiers on the ground. It’s to drive technology in this country. That is the quickest way to make sure somebody does not come to our doorstep and does not start a global war. It is absolutely the biggest deterrent,” Beck said.
The significance of this deal looms large for Peoria.
Amkor plans to invest at least $700 million during two phases and eventually employ 850 full-time employees on the 56-acre property, which is planned in a portion of the Vistancia commercial core, according to the development agreement.
Amkor officials tout the company will bring a $2 billion multiphase investment to Peoria.
Deputy City Manager Mike Faust said this will be a total capital expenditure by Amkor over years in the city, including as many as 2,000 new local jobs.
“At full scale and full tilt, we are confident they will get to the 2,000 jobs, but 850 is the base minimum. That’s what they have committed to contractually. That is the floor. That is the minimum, versus the aspirational, the 2,000,” Faust said.
The 45-page development agreement outlines a number of milestones regarding construction and employment.
First, Amkor agrees to close escrow on the property on or before Oct. 31, 2024, and agrees to commence construction on or before Sept. 30, 2025.
Failure to complete these milestones will result in reversion of the land and water rights, according to the development agreement.
Next, Amkor agrees to complete construction of the manufacturing facility for phase one on or before Sept. 30, 2027.
Phase one employment milestones include 300 employees no later than Sept. 30, 2027; and 425 employees no later than Sept. 30, 2028; and 550 employees no later than Sept. 30, 2029.
Should Amkor fail to achieve the employment milestones, the agreement states, they shall pay $5,000 per employee per month until the employment milestone is reached. The public infrastructure will be constructed and reimbursed by way of a three-way joint development agreement with Amkor, Peoria, and Vistancia Development LLC.
Vistancia will build the roads and provide utility delivery, and the city will reimburse approximately $3 million toward the cost of the public infrastructure, the agreement states.
The land is entitled for this facility under the Vistancia Planned Community District, or PCD, and is subject to Vistancia design requirements, meaning it is planned to fit the character of the commercial core.
Vistancia Development LLC will sell and transfer the property to Amkor for the purpose of constructing the project, the development agreement states.
Amkor Technology, a Fortune 500 company, is a global leader in semiconductor packaging and test services since its founding in 1968.
Councilmember Jon Edwards said Amkor locating in Peoria is a “game-changer” and one of the biggest projects he has ever been involved with during his time on the council.
“This is going to definitely put Peoria on the map, not only Peoria, but the West Valley and the state of Arizona,” he said.
Philip Haldiman can be reached at phaldiman@iniusa.org, or on Twitter @philiphaldiman. We’d like to invite our readers to submit their civil comments, pro or con, on this issue. Email AZOpinions@iniusa.org.
Meet Philip Haldiman is an award-winning journalist who most recently took first place for investigative reporting in 2023 from Arizona Newspapers Association. He joined Independent Newsmedia, Inc., USA, in 2015, covering Sun City West his first year. Since 2016, he has covered the city of Peoria. Prior to coming to INI, he was a reporter with The Arizona Republic for seven years, covering numerous cities throughout the Valley. Before that, he was a freelance writer.
Community: Haldiman spearheads the Peoria Independent Hometown Heroes Awards program, honoring local individuals and businesses that give back to the community. He has hosted local candidate forums over the years and is a member of the Society of Professional Journalists. Haldiman also served as a member of the Journalism Program Community Advisory Board at Glendale Community College. Outside journalism, Haldiman served as a member of the city of Peoria Complete Count Committee for the Census, 2019-2020. Lastly, he has served as a member of his HOA governing board since 2021.
Education: Arizona State University with a BA in Journalism and Mass Communications and a BA in Theater.
Random Fact: Haldiman is a fourth-generation Arizonan as well as wrote and produced an autobiographical comic book about his time spent in Hollywood and his life as a cult film star.
Hobbies: He enjoys hiking Arizona’s mountainous landscapes and is currently working on a play for the stage.
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